Looking at the EUR vs CAD using the Ichimoku system we can see that price has bounced off of the bottom of the Kumo Cloud. The bottom of the cloud is resistance at the 1.32380 mark. Also we have Fib levels drawn in and the 50% retracement level is in confluence with the bottom of the cloud giving us even more reason to believe the resistance level will hold. The 100 period MA which is the blue line on the chart is also sloping downwards which indicates we are in a trend to the down side. Stop loss has been placed just below the 100 MA and first profit target is at the last point of support. If this level is violated then we will look for our second profit target at 1.29879.
I should make note of a few details. First if you follow Ichimoku you would notice that the Tenkan-Sen, Kijun-Sen and Chikou span are not on the chart. For this type of trading they are removed and I don't use them. My main objective is to use the Kumo for S&R levels and market sentiment. Also my cloud might not look like yours and that is because we change the Ichimoku settings from 9, 26 and 52 to 18, 52 and 104, so we double everything. This gives us a more defined level of S&R and you don't have as many Kumo twists. Therefore price doesn't break the cloud as often and produce as many false signals. I'll go into detail about this way of using the Ichimoku system later but just wanted to show a trading opportunity that I am in. Happy Trading and God bless!